Title: The decline in purchasing power and its impact on the household basket: a disastrous reality
Introduction :
Declining purchasing power is a major issue affecting many countries, and the Democratic Republic of Congo is no exception. In his speech on the occasion of the national holiday of June 30, President Félix Tshisekedi acknowledged the perplexity of the Congolese in the face of this situation and sought to explain the reasons linked to it. In this article, we will explore the factors that contribute to this decline in purchasing power and its consequences on the shopping basket.
Global context and security situation:
President Tshisekedi stressed that despite the performance recorded in terms of domestic revenue, the decline in purchasing power remains a reality. He mentioned the global economic context and the security situation in the east of the country as external factors explaining this situation. The war in Ukraine has caused world prices for commodities, raw materials, energy and basic necessities to rise, creating inflationary pressures. Moreover, the war in eastern DRC has led to exceptional expenditure in the field of security, which also has an impact on the purchasing power of the Congolese.
Positive medium and long-term outlook:
Despite these challenges, President Tshisekedi stressed that the short and medium term outlook remains favorable. The forecasts of the International Monetary Fund foresee significant economic growth for the years to come. However, it is essential to put in place macroeconomic stabilization measures in order to limit the harmful effects on the household basket and to improve public governance in key sectors.
Measures taken by the government:
President Tshisekedi has assigned the government and the Central Bank of Congo the task of strengthening efforts to stabilize macroeconomic parameters. It is essential to limit the impact on the household basket as much as possible while meeting the legitimate aspirations of the population. Measures will be taken to improve public governance and ensure transparent use of resources.
Conclusion :
The decline in purchasing power is a difficult reality for many Congolese. The causes are multiple, ranging from external factors such as the global economic context and the security situation, to internal challenges such as public governance. However, despite these challenges, the medium and long-term economic outlook remains favorable, and measures will be taken to mitigate the effects of this decline on the shopping basket. The situation calls for collective action, both from the government and the population, to stimulate economic growth and improve the living conditions of the Congolese.